Unofficial Price in Bangladesh is the price that is charged by the companies outside the official price. These are mostly available in market centers or from online stores. The parallel prices may be different and flexible according to the demand and supply as well as stock availability. For instance, currently prevalent gadgets such as mobile phones have varying prices in unauthorized shops. This happens due to taxes, import duties as well as supply shortages in the market.
Nevertheless, there might be fakes or missing warranties. Knowledge of unofficial prices enables customers to make the right decision and prevent being defrauded. It is also an important factor in the market structure of Bangladesh.
The What is Unofficial Price in Bangladesh
Unofficial price means the price at which products are sold outside the authorized or official network. In Bangladesh there are unofficial prices for most of the phones. These prices are not recommended by the original producer or the official supplier of the product. However, they are not fixed by law but are set by sellers in local markets, retail stores or through online sales platforms.
Pricing can be unofficial for several reasons. There is one reason which is quite frequently mentioned, and that is the very high import tax that is charged on imported goods. These taxes are avoided by the sellers and they provide the products at lower prices. To give an example, an officially tagged phone, say a smartphone may cost BDT 50,000 formally but only BDT 45,000 in the parallel market.
Informal prices are lower compared to the official prices, this is attractively because of the large number of buyers. However, products sold at unofficial prices may not have a warranty or after-purchase service for the product. Like any other online store, there is also a possibility to buy fake or damaged products.
It is relevant to understand the concept of unofficial pricing in the economy of Bangladesh. It captures the consumers’ choice, supply and distribution constraints and the cost of products. But still, unofficial pricing is quite tempting for many buyers who prefer to receive better offers.
Factors that Influence Unofficial Pricing in the Bangladeshi Market
- High Import Duties and Taxes: High taxes on imported goods force the sellers to use other channels of selling their products at 30-50% lower than the official market price.
- Product Availability and Demand: In these circumstances, when producers do not produce and distribute their products through legal outlets, customers resort to ‘’black market’’ sellers, who tend to exploit the situation by increasing the price of popular goods such as new technologies.
- Currency Exchange Rates: This affects the price in the unofficial market as the Bangladeshi Taka has experienced a high volatility in the foreign exchange market.
- Competition Among Sellers: These unofficial sellers can reduce their price even further, for example, in the shopping centers like Bashundhara City, Dhaka, or through the internet sites. But this sometimes leads to fake products being sold at relatively low prices.
Lack of Warranties and Support: The prices of the products sold by unauthorized dealers are lower because they do not include warranties and after-sale services.
A grasp of these points makes it easy for consumers to deal with the unofficial market better.
See Unofficial Phone and Price in Bangladesh: Mobiledokan
The Pros and Cons of Unofficial Pricing for Consumers
Unofficial pricing system in Bangladesh has its benefits and demerits for the consumers. Knowledge of these can assist the buyers in making good decisions.
Pros:
Lower Prices: Prices of unofficially priced products are somehow lower compared to those that are officially priced. This draws consumers on the lookout for cheaper abodes particularly for phones.
Availability: Informal traders carry stock that may not be found in formal shops. This is especially so for new models of smartphones or specially promotion exclusive items.
Variety: The unofficial market typically provides diverse and more extensive stock than the official one, as well as imported products from various zones.
Flexible Negotiations: The buyers are often able negotiate with the sellers which is considered better than fixed prices in official outlets.
Cons:
No Warranty or Support: Most of the products that are sold at these unofficial prices do not come with warranties or after sale services. Nevertheless, the repairs or replacements can turn out to be very costly.
Risk of Counterfeits: Such a platform is likely to come across fake or substandard products.
Inconsistent Quality: In the unofficial market, products do not undergo regular quality tests hence their performance may be wanting.
Legal and Ethical Concerns: The buying of these products may promote tax evasion or unauthorized importation of certain products.
Unofficial pricing gives a set of opportunities and, at the same time, it has a number of disadvantages. Purchasers should consider the advantages and disadvantages of making a purchase.
What is the difference between Unofficial Price and Official Price?
In Bangladesh, two terms are commonly used in relation to the price of the goods: the unofficial price and the official price. The only major variation between these two prices is on how the products being imported and sold in the market. Knowledge of such a distinction is useful to consumers when trying to make a wise buying decision.
Official Price
Official price is a price fixed by the manufacturer or any company that sells the product through an authorised dealer or agent. It consists of all legal expenses like tariffs and taxes, as well as shipping costs. Also, products that are sold through the official price are backed with warranty and after sale service. All these products can be obtained in the authorized shops, and the cost is similar for all regions. For instance, an officially imported brand new smartphone in Bangladesh may have its original price tag of BDT 30,000 which remains the same throughout official markets.
Some official phones are mentioned below:
Unofficial Price
But the unofficial price is set by people who are able to import the products without the official distributor’s approval. These products may avoid some legal expenses such as taxes and import duties for this reason they are cheap. Yet, the products specified with an unofficial price have a higher risk associated with them. They may not be genuine, and they often are not bonded by warranty or after sales service. For example, while the formal shops sell the same model for BDT 30,000, the same can be bought for BDT 27,000 in the unofficial market.
Some Unofficial phones are mentioned below:
So, the official price is a security for purchasing a quality product with guaranteed service, whereas the unofficial price allows saving money at the price. It means that buyers should make their decisions based on their preference.
Final Word
Bangladesh had the problem of unofficial prices of the phones even when there is an official price set. Some of these prices are usually as a result of demand-supply shifts or government policies hence, they may be expensive to the consumer. As much as unofficial pricing strategies can at times help the seller gain in the short run it distorts the markets fairness and transparency.
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